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Hogs, Pork Bellies Advance

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From Associated Press

Live hogs and frozen pork bellies were higher and cattle prices were mixed Wednesday on the Chicago Mercantile Exchange.

Indications that the size of the hog slaughter is declining were helpful for hog futures, analysts said, noting that a seasonal decline is overdue.

Tom Morgan, a livestock analyst in Chicago with Heinold Commodities, said cash quotes have been advancing, and meatpackers have been reducing their kills as a result.

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Some of the buying appeared to be coming from computer-directed speculative accounts, said Phil Stanley, a livestock analyst in Chicago with Thomson McKinnon Securities.

Buying slacked off late in the session as traders began anticipating lower wholesale cash prices today, Stanley said.

Pork bellies were sharply higher. Speculators were major buyers, as technical factors such as trends on price charts added to the support coming from the hog market, Stanley said.

Cattle for delivery in June were lower, as supplies appear adequate, if not excessive, and demand for beef by retailers is slack, analysts said.

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